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(1) A proceeding to obtain private property for public use through the exercise of the government's rights of eminent domain. Historically considered possible only for public improvement projects such as roads, schools, and courthouses, the landmark U.S. Supreme Court case of Kelo v.City of New London, 125 S.Ct. 2655 (June 23, 2005) held that local government could condemn land belonging to one private party in order to convey it to another private party as part of an economic development plan to increase government revenues, add jobs, and improve the quality of life in a depressed area.

In a condemnation case, the government will order an appraisal of the property and then offer the owner the appraised price,or perhaps a negotiated amount in excess of the appraisal but taking into account the savings realized by not having to litigate the issue.If the property owner does not accept, the government must escrow the amount of money determined by its appraisal and may then proceed with condemnation of the property.The parties may then go to court to contest the amount of the required award,but the contest will not prevent or delay condemnation of the property.

Specialized tax rules apply whether property is condemned,sold to the government under threat of condemnation,or sold to a third party under reasonable fear of impending condemnation (see IRS Publication 544 at may defer income realized in a condemnation award by purchasing replacement property within 2,3,or 5 years,depending on the particular circumstances.

Payments to cover the costs of relocating are not part of the condemnation award and are not taxable income.Severance damages awarded because of damage caused to the remaining property are not part of the condemnation award. The amount of damages will reduce the basis in the remaining property. If it reduces the basis to $0, then any excess must be reported as gain, but taxation can be deferred.

(2) A decision by local government that property owned by another is no longer safe and must be repaired or demolished.It is not a defense that the owner is making no use of the property and is not exposed to any danger,so long as the public at large may be exposed to danger.If the owner fails to make the necessary repairs or take any other action, the government authority may conduct the demolition itself and place a lien upon the property for the costs of demolition.


The taking of property by a public authority. The property is condemned as the result of legal action and the owner is compensated by the public authority. The power to condemn property is known as the right of eminent domain.
References in periodicals archive ?
He tweeted, "Mauritius strongly condemns the attack on Indian pilgrims returning from Amarnath, says that it stands with India at its moment of grief.
Afghan government strongly condemns terrorist attacks in Tehran and once again underlines the need for a joint fight against such scourge phenomenon,' he wrote.
What degree of friendship should one have had with Drey to have the right to condemn his killing and to demand justice?
Heads of Syrian Clans Condemn the Terrorist Explosions Sheikh Abdul-Aziz al-Barak of al-Jabour clan condemned the terrorist explosions which hit Damascus, stressing that these explosions and other terrorist acts will not weaken the will of the Syrian people.
Shesaid that "the United States condemns this appalling attack in the strongest possible terms.
Parts of the Bible do seem to condemn us but, when compared with other, equally problematic and often sexist passages, it is clear that the phrase, 'the Bible says' is not a sufficient argument for anything.
I being a Muslim condemn the blasphemous cartoons in the strongest term.
That October, John Paul II became the first Polish pope in history, and he soon embarked on an unprecedented and unremitting campaign to condemn gay sex, gay relationships, and gay parents that began with his "Letter to the Bishops of the Catholic Church on the Pastoral Care of Homosexual Persons," coauthored in 1986 by his staunchly antigay confidant, Cardinal Joseph Ratzinger of Germany.
He urged Muslim leaders to condemn the beheading of American hostage Nick Berg.
The peer, who now lives on Gower, provoked anger recently when he said Islamic leaders had not done enough to condemn the use of suicide bombers.
We call on the South African Government to speak out and condemn the ongoing violation of human rights in Zimbabwe," said the leaders from churches in Johannesburg and from South Africa's most populous province of Gauteng in a recent statement.
GOD did not send his Son into the world to condemn the world, but to save the world through him.